1. Some thoughts on the European Venture scene Saul Klein saul@indexventures.com Web2Expo – Berlin October 22, 2008

2. The weather looks pretty terrible right now

3. No wonder Jason was getting depressed

4. The Valley is seriously downbeat

5. Though Dave McClure did shout out a “get over it”

6. Fact is start ups are really tough

7. You have no customers

8. No money

9. You and your team are fighting an imaginary war

10. Armed just with some big ideas

11. But hey, we’ve fallen from greater heights

12. FoundedIPO VC Some of the greats started in depressions

13. Founded IPO VC >> ? Many major winners started during and after the last bubble

14. Now the Internet is nearly 6x the size of 2001 Hosts

15. How we spend our time online has shifted radically

16. Big 3Social 14 Minutes159 bn141 bn Mins/Visitor513 Page Views216 bn296 bn Pages/Visitor125583 This shift will have big, long term repercussions

17. We’re living in a new technical world order

18. Firefox has 42% market share!!!

19. We now have substantial shared “public” resources

20. New platforms are changing infrastructure and distribution costs

21. Free resources exist to support and educate start-ups 8 hubs 80+ cities

22. Boulder Leeds Utrecht Helsinki Hamburg Paris Belgrade

23. We will almost certainly face severe and sustained recessions - 61% YTD - 63% YTD - 49% YTD - 40% YTD - 62% YTD - 56% YTD

24. But where the Internet is used has changed dramatically – its not just the US anymore

25. There is still a lot of capital to invest in Europe

26. Capital will look to back people who understand the new reality

27. Angels will retreat

28. Focus. Don’t panic.

29. Bootstrap Like Crazy. Focus. Don’t panic.

30. Bootstrap Like Crazy. Focus. Don’t panic. Make products people want.

31. Get Paying Customers. Bootstrap Like Crazy. Focus. Don’t panic. Make products people want.

32. Get Paying Customers. Cut costs. Get to break even Bootstrap Like Crazy. Focus. Don’t panic. Make products people want.

33. Raise enough capital. Stay Strong. Get Paying Customers. Cut costs. Get to break even Bootstrap Like Crazy. Focus. Don’t panic. Make products people want.

34. Whatever works for you use it. Good luck

35. Appendix Some interesting data….

37. Latest figures show European investment is going up

38. Europe already had three $ bn investment hubs

39. Why break-even and capital are important